MAKAZI BOND ATTRACTS TZS 33 BILLION IN SUBSCRIPTIONS AS STANBIC-LED ISSUE ACHIEVES 661% OVERSUBSCRIPTION

The Chief Executive Officer of First Housing Finance (FHF), Amulike Kamwela (right), speaking with the Head of Investment Banking at Stanbic Bank, Sarah Mkiramweni (left), during the listing ceremony of the Makazi Bond on the Dar es Salaam Stock Exchange. In the middle is the Acting Chief Executive Officer of the Dar es Salaam Stock Exchange (DSE), Mary Mniwasa.

Dar es Salaam, June 2026 – Tanzania’s capital markets have recorded another significant milestone after the Makazi Bond issued by First Housing Finance (FHF) Tanzania and arranged by Stanbic Bank Tanzania achieved an impressive 661 per cent oversubscription, underscoring growing investor confidence in both the housing finance sector and the country’s investment landscape.

The bond attracted subscriptions worth TZS 33.08 billion, substantially surpassing its initial fundraising target of TZS 5.0 billion. The remarkable response highlights strong investor appetite for innovative financial instruments and reinforces the increasing importance of capital markets as a source of long-term development financing.

The transaction ranks among the most successful Tanzanian Shilling-denominated bond issuances in recent years, reflecting the continued maturation and deepening of Tanzania’s capital markets.

Speaking on the achievement, First Housing Finance Tanzania Board Chairman, Mr Charles Mugila, described the successful issuance as a major milestone for both the institution and the wider financial sector.

“This success reflects the high level of confidence investors have in our institution and the continued growth of Tanzania’s capital markets. As a Board, we are committed to ensuring that these funds are utilised prudently, transparently, and efficiently to achieve their intended purpose,” he said.

Following overwhelming demand from investors, First Housing Finance secured approval from the Capital Markets and Securities Authority (CMSA) to accept TZS 28.15 billion, enabling the institution to expand mortgage lending and support greater access to housing finance across Tanzania.

The successful listing of the Makazi Bond on the Dar es Salaam Stock Exchange (DSE) on 9 June 2026 further strengthened the domestic capital market. The listing increased the value of investments in corporate bonds by 1.63 per cent, from TZS 2.03 trillion to TZS 2.06 trillion, contributing to the continued growth and diversification of investment opportunities available to Tanzanians.

The additional capital is expected to enhance FHF’s capacity to provide housing finance solutions to a broader segment of the population, supporting national efforts to increase access to affordable housing while stimulating activity in the construction and real estate sectors.

CMSA Chief Executive Officer, CPA Nicodemus Mkama, noted that the strong performance of the bond reflects increasing investor confidence in both First Housing Finance and Tanzania’s capital markets.

According to CMSA data, retail investors accounted for 96.63 per cent of total subscriptions, while institutional investors contributed 3.37 per cent, demonstrating the growing participation of individual Tanzanians in capital market investments.

CPA Mkama attributed the success to the supportive policy, legal and operational environment established by the government to encourage investment through capital markets.

“The achievement has been supported by various incentives, including the removal of withholding tax on returns from corporate bonds, which has made such investment products more attractive to investors,” he said.

He further noted that the issuance aligns with the implementation of the Financial Sector Development Master Plan, which seeks to improve access to long-term financing for both public and private sector development projects.

For Stanbic Bank Tanzania, the success of the Makazi Bond reinforces the country's growing reputation as one of East Africa’s leading capital market destinations.

Stanbic Bank’s Head of Investment Banking, Ms Sarah Mkiramweni, said the bank was proud to have served as lead arranger for the transaction, working closely with regulators and key stakeholders, including CMSA, the Bank of Tanzania and the DSE, to successfully bring the bond to market.

“Capital markets continue to be a critical source of fundraising for institutions, and Stanbic remains committed to supporting organisations seeking alternative financing through bond issuances and other market instruments,” Ms Mkiramweni said.

She highlighted Tanzania’s supportive regulatory framework and diversified investor base, which includes institutional investors, retail investors and international development finance institutions, as key factors driving successful bond issuances.

Commenting on the housing sector, Ms Mkiramweni reaffirmed Stanbic’s commitment to supporting the government’s housing agenda through mortgage financing solutions and by helping housing finance institutions access affordable capital for lending.

“Housing development is a key component of Tanzania’s Vision 2050 aspirations. As one of the country’s leading banks, we are committed to supporting long-term financing solutions that expand home ownership and contribute to economic growth,” she said.

Market analysts believe the success of the Makazi Bond could encourage more non-banking institutions to access capital markets as an alternative source of funding. Such developments would broaden financing options for businesses, deepen investor participation and further strengthen Tanzania’s financial ecosystem.

A Positive Signal for Tanzania’s Capital Markets

The exceptional performance of the Makazi Bond demonstrates the growing sophistication of Tanzania’s financial markets and the increasing willingness of investors to support long-term development initiatives through capital market instruments. As demand for housing finance continues to rise, the successful issuance also provides a model for how capital markets can be leveraged to address critical economic and social development priorities while delivering attractive investment opportunities.

The Chairman of the Board of Directors of First Housing Finance (FHF), Charles Mugila (left), speaking with the Head of Investment Banking at Stanbic Bank, Sarah Mkiramweni, during the listing ceremony of the Makazi Bond on the Dar es Salaam Stock Exchange (DSE) on Tuesday.

The Chief Executive Officer of the Capital Markets and Securities Authority (CMSA), Nicodemus Mkama (left), speaking with the Head of Investment Banking at Stanbic Bank Tanzania, Sarah Mkiramweni, during the listing ceremony of the Makazi Bond on the Dar es Salaam Stock Exchange (DSE).